Procyclical prices: a demi-myth?

This paper critically reevaluates recent claims that the postwar U.S. price level exhibits countercyclicality. While overall countercyclicality is confirmed, temporal disaggregation suggests a shift from pro- to countercyclicality in the early 1970s. Furthermore, the countercyclicality is markedly more pronounced for negative than for positive output innovations. The evidence thus casts doubt on single-source business cycle explanations.Prices ; Business cycles

Atrazine Degradation, Sorption and Bioconcentration in Water Systems

The herbicide atrazine is used extensively to control broadleaf and grass weeds in such crops as sorghum and corn. A small portion of the atrazine may be lost from the area of application by surface runoff and could enter a stream or lake. The objective of this study was to evaluate atrazine degradation, sorption, and bioconcentration in watersediment systems. The results indicated that sediments with lower pH values and higher organic matter levels adsorbed higher levels of atrazine than sediments with neutral pH values and lower organic matter levels. Microbial decomposition of the herbicide was slow under the conditions of this study. Accumulation of atrazine by microorganisms in an aqueous system was demonstrated4 The results indicated that the organic fraction of a water system may be the most important adsorption ccmponent. Data from this study will be useful in assessing the ramifications of herbicides in aquatic ecosystems and provide a better understanding of the reactions of herbicides in sediment-water systans

The savings collapse during the transition in Eastern Europe

The authors assess the presence and extent of involuntary savings by comparing the predicted savings rates of market economies with those of the pre-transition economies. On balance, predicted savings rates fell short of actual savings rates, especially for the former Soviet Union and the Baltics -- providing some support for the notion of excessive pre-transition savings. Comparing the savings behavior of market economies and transition economies, they found substantial similarities, except for a negative link between savings and GDP growth. As the fastest-growing transition economies are at the bottom of the adjustment J-curve, the finding is consistent with consumption smoothing. Finally, they explored whether differences in the extent of economic liberalization affected savings rates in the cross-section of transition economies. They found that liberalization is associated with lower savings, with a one-year lag. To the extent that liberalization is perceived as an indicator of likely future growth, this behavior is consistent with smoothing in the face of a J-curve change in output.Insurance Law,Banks&Banking Reform,Economic Theory&Research,Environmental Economics&Policies,Insurance&Risk Mitigation,Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research,Insurance&Risk Mitigation,Rural Poverty Reduction

The Law of One Price - A Case Study

We use retail transaction prices for a multinational retailer to examine the extent and permanence of violations of the law of one price (LOOP). For identical products, we find typical deviations of twenty to fifty percent, though there is muted evidence for convergence over time. Such differences might be due to differences in local costs. If so, relative prices of similar products (round versus square mirrors) should be equal across countries. In fact, relative prices vary significantly across very similar goods within a product group; indeed, the ordering of common currency prices often differs for similar products. The finding suggests that differences in local distribution costs, local taxes, and probably tariffs do not explain the price pattern, leaving strategic pricing or other factors resulting in varying markups as alternative explanations for the observed divergences.Law of one price, arbitrage, exchange rate passthrough, price setting